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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Amid a resurgence in the global aerospace and defense sector, Jefferies has upgraded RTX Corp. from Hold to Buy, raising its price target to $220. This shift is driven by a positive outlook for margin expansion within the company's commercial business and upward revisions to EPS estimates for 2026-2028. Analysts highlighted the potential for RTX to generate over $9 billion in discretionary free cash flow over the next three years, supported by operational improvements and pricing gains.
This optimism regarding RTX comes as the defense industry experiences significant momentum, with peers like Lockheed Martin (LMT) recently reporting robust quarterly results fueled by increased global demand for defense systems. Per market data, RTX's current valuation reflects growing investor confidence in its ability to navigate supply chain challenges that previously hampered the sector. Jefferies positions the company favorably against competitors such as Northrop Grumman (NOC), noting RTX's balanced exposure to commercial aviation.
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Sign InInvestors should watch RTX price levels following its close at $215.40 (June 3, 2026) as it nears the new analyst target. Looking ahead, U.S. Durable Goods Orders, which showed a strong 7.9% growth in May according to data from May 28, 2024, remain a critical macro indicator for industrial demand. Upcoming defense contract announcements and further guidance on commercial engine performance will serve as the primary catalysts for the stock's trajectory.